Goodwin is a proud sponsor of OpenView’s latest annual Financial & Operating Benchmarks Survey. The report took a deep look at successful SaaS companies to compare performance across metrics that matter most in a SaaS business and identify those that propel long-term growth.
This year’s report revealed surprising insights about the distribution and flows of capital within the public B2B SaaS landscape, what investors are rewarding in company performance, and the prevalence of product-led growth (PLG). According to the findings, the best-performing companies are driving outsized spending on R&D, which ties directly to PLG. In fact, the report reveals that PLG companies generate 1.7x more gross profit for every dollar of sales and product spent.
Other key findings from the report include:
- The flow of capital in SaaS is not equally distributed.
- Forget the Rule of 40. It’s now all about the Rule of 30: 30% topline growth.
- Going public can be the beginning of the growth story, not the end.
Some additional key takeaways from the report include:
- How best-in-class companies are marrying the trio of “big market, compelling growth engine, and unit economics” to tell a big story;
- How culture is critical to hiring in high-growth companies.
- The report also covers key SaaS value drivers;
- Progress on executive diversity, and more.
OpenView, an expansion stage venture firm, helps build software companies into market leaders. Through the firm’s expansion platform, OpenView helps companies hire talent, acquire and retain customers, and partner with industry leaders so they can dominate their markets.